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NZDUSD: Bounce Toward 0.72 Eyed for Short

By Ilya Spivak, Currency Strategist
13 August 2010 07:49 GMT

Strategy: Pending Short

NZDUSD took out support at the bottom of a bearish Rising Wedge formation to stall at 0.7057, a horizontal support level. Although positioning clearly calls for a short position, entering at current levels looks unattractive from a risk/reward perspective and we will look for a corrective upswing to yield a better setup. Initial resistance lines at the 0.72 figure.

NZDUSD_Bounce_Toward_0.72_Eyed_for_Short_body_081210_NZD.png, NZDUSD: Bounce Toward 0.72 Eyed for Short

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13 August 2010 07:49 GMT